Newfield Exploration (NYSE:NFX) Marcellus Acquisition Could Take Shine Off Story, Buying Opportunity

Newfield Exploration's (NYSE:NFX) acquisition of 50,000 acres from EOG Resources (NYSE:EOG) could trigger selling of shares, according to Ticonderoga, taking some shine off of their overall story.

"NFX is acquiring 50,000 net acres in the Marcellus Shale from EOG Resources (NYSE:EOG) (Neutral) for $405MM. The acreage is located in Bradford County, within the Northeastern section of the play and one of the developing core areas where there has been significant industry activity...The transaction could take some shine off the story, providing an attractive entry point...If so, we would be buying on the sell off as NFX’s strengths in this environment are still very apparent," said Ticonderoga.

Ticonderoga maintains a "Buy" on Newfield.

Newfield was trading at $63.67, falling $1.71, or 2.62 percent at 12:22 PM EST. Ticonderoga has a price target of $75 on the company.